Spain’s credit rating upgraded to ’A+’ by S&P on strong growth
Investing.com - MasTec (NYSE:MTZ), the $13.9 billion construction services company, received an Outperform rating initiation from Mizuho on Thursday, with analyst Maheep Mandloi setting a price target of $215.00. According to InvestingPro data, the stock is currently trading near its Fair Value, with 8 analysts recently revising their earnings estimates upward.
The construction services company generated approximately 55% or over $6.75 billion in sales from clean energy and power delivery last year, according to Mizuho. This segment is expected to grow to 64% or approximately $9 billion in 2025, aligning with the company’s projected 14% revenue growth forecast for FY2025 noted in InvestingPro’s comprehensive analysis.
Mizuho highlighted increasing investments in power delivery and clean energy over the next three years, driven by growing power demand, insufficient transmission capacity, and aging grid infrastructure.
The firm projects U.S. solar capital expenditure to rise from $53.6 billion currently to $57.1 billion in 2028. Power delivery, representing electric utility capital expenditure, is forecast to grow at a 4.4% compound annual growth rate from $197 billion today to $225 billion in 2028.
Both markets are being propelled by increasing power demands from artificial intelligence data centers, electrification trends, and reindustrialization efforts, according to the Mizuho research note.
In other recent news, MasTec has announced a temporary blackout period for its 401(k) Retirement Plan participants due to a transition in recordkeeping services. This change will occur as the company moves its recordkeeping from Bank of America/Merrill Lynch to Schwab Retirement Plan Services, Inc., effective October 1, 2025. During this blackout period, participants will not be able to make certain transactions within the plan. On the financial front, MasTec reported strong second-quarter results, prompting several analysts to adjust their ratings and price targets. Stifel raised its price target to $198, citing the robust performance and an increase in the company’s fiscal year 2025 guidance. Similarly, Jefferies increased its price target to $218, maintaining a Buy rating after MasTec’s positive second-quarter outcomes. Texas Capital Securities initiated coverage with a Buy rating and a $250 price target, emphasizing MasTec’s significant role in the utility infrastructure sector. KeyBanc reiterated its Overweight rating, noting potential growth opportunities for the company. These developments reflect a positive outlook from analysts based on MasTec’s recent performance and strategic moves.
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